GCB Bank Declares GH¢265m Dividend; GH¢1 per Share Pending Central Bank Approval
GCB Bank PLC has announced a proposed dividend payout of GH¢1 per share, totaling GH¢265 million for the 2024 financial year, pending approval from the Bank of Ghana. This marks the bank’s return to dividend distribution after a two-year hiatus, attributed to the capital constraints imposed by the domestic debt exchange programme.
Record Financial Performance
In its 31st Annual General Meeting held in Accra, GCB Bank reported a record Profit Before Tax (PBT) of GH¢1.91 billion for 2024, reflecting a 25.3% increase from the previous year. This achievement concludes the bank’s four-year strategic cycle, highlighting its resilience and strategic growth amidst a challenging operating environment.
The bank’s revenue growth was driven by an 18.3% rise in earnings, comprising an 18.6% increase in interest income, a 22.5% surge in non-funded income, and an 8.41% rise in net trading income. Total assets grew by 57.6% to GH¢42.8 billion, significantly surpassing the industry’s growth rate of 33.79%.
Strategic Initiatives and Operational Highlights
GCB Bank’s performance reflects the successful implementation of its strategic initiatives, including a focus on customer-centric sales, diversification of revenue streams, modernization of digital solutions, and a strengthened risk culture. These efforts contributed to a 52.8% increase in loans to GH¢10.2 billion and a 58.5% rise in deposits to GH¢34.5 billion.
The bank’s capital position strengthened, with shareholders’ equity rising by 41% to GH¢4.3 billion. The Capital Adequacy Ratio stood at 15.23%, well above the regulatory minimum of 13%. Earnings Per Share increased to GH¢4.53, with a Return on Equity of 32.4% and Return on Assets of 3.4%. The non-performing loans ratio improved to 15.1%, down by 5.1% from the previous year.
Corporate Social Responsibility Initiatives
In 2024, GCB Bank invested GH¢12 million in Corporate Social Responsibility, focusing on education, health, sports, and social inclusion. Initiatives included supporting career opportunities at the Kwame Nkrumah University of Science and Technology, donating over 3,000 textbooks to schools, funding lifesaving treatments, and championing social inclusion through donations to institutions such as the Akropong School for the Blind and the Osu Children’s Home.
Outlook and Strategic Direction
Looking ahead, GCB Bank’s new strategic cycle (2025–2028) aims to consolidate gains and drive sustainable growth. The strategy focuses on three core pillars: Customer Experience, Digital Transformation, and People and Talent. The bank plans to enhance customer experience through hyper-personalization and advanced digital transformation to streamline operations.
Managing Director Farihan Alhassan emphasized that 2024 was the bank’s best performance in nominal terms and acknowledged the need for improved cost efficiency. Chairman Prof. Joshua Alabi highlighted the opportunity to build on recent gains and pursue industry dominance by enhancing customer experience, leveraging digitalization, and boosting sales activities. He expressed confidence that this strategic approach would lead to long-term success and growth.
Conclusion
GCB Bank’s proposed GH¢265 million dividend payout reflects its strong financial performance and commitment to delivering value to shareholders. Pending approval from the Bank of Ghana, this dividend will mark a significant milestone in the bank’s recovery and growth trajectory. With a solid capital base, strategic focus on customer experience, and ongoing digital transformation, GCB Bank is well-positioned to continue its leadership in Ghana’s banking sector.
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